The goal of this research is to develop a "Biomolecular Sensor" with magnetic nanoparticles implanted in it to detect and destroy cancerous cells by thermal ablation. The "Biomolecular sensor" consists of superparamagnetic iron oxide nanoparticles with externally attached antibodies. The antibodies will function as targeting agents to a specific tumor site. Superparamagnetic nanoparticles will be subjected to AC magnetic field to generate heat, which is used to destroy cancerous cells. This paper presents the method to synthesize Iron Oxide (Magnetite) nanoparticles and to measure/record the temperature elevation seen when they are subjected to AC magnetic field. This procedure of destroying cancerous cells by elevating temperature inside the tumor tissue is referred as "Hyperthermia". This process represents minimal invasive alternative for elimination of cancer cells at appropriate sites and is less harmful and preferred to other therapies such as Laser ablation, Chemotherapy, Radiotherapy, etc. Hyperthermia prevents the unnecessary heating of healthy tissues since only the injected magnetic particles in the tumor region absorb the magnetic field. In this study Iron oxide nanoparticles-Magnetite synthesized via co-precipitation method was exposed to AC magnetic field to generate heat. Magnetite is an ideal candidate for hyperthermia cancer treatment as it is highly biocompatible, exhibits low levels of toxicity and shows high saturation magnetic moment.